Chinese airlines finally get Taiwan rights

HONG KONG: China's three largest airlines, China Southern, Air China and China Eastern, have each secured four weekly flights to Taiwan after an agreement eased restrictions on direct flights across the Taiwan Strait.
According to the Civil Aviation Administration of China, Hainan Airlines, Shanghai Airlines and Xiamen Airlines will each have two weekly flights to Taiwan. More direct flights and destinations may be added depending on market demand. China Eastern Airlines says it will soon set up shop in Taiwan to help charter flight services and start looking for its first representative office in Taipei. It is also talking with Taiwan's largest carriers, China Airlines and EVA Airways, about co-operation. China Southern, the nation's largest carrier by fleet size, is set to sign a deal with China Airlines. Weekend flights are set to start next month following the lifting of restrictions imposed in 1949. China Airlines told The Hong Kong Standard it ran about 30 direct flights to the mainland on public holidays last year, as well as 16 flights across the strait during the Lunar New Year. A small number of non-stop charter flights have been allowed in recent years, but were restricted to holidays. Analysts believe Taiwanese carriers will be the big winners from the "direct flights" scheme. According to JP Morgan, 36 passenger charter flights a week will boost Chinese airlines' net profits by less than 1% and cut Cathay Pacific’s earnings by a similar degree.